Connect with us

Business

Naira rebounds to N1,400/$ as speculators offload forex

Published

on

Rising number of Nigerians schooling abroad, medical tourism responsible for Naira free fall - CBN Gov

The naira rebounded against the United States dollar on Wednesday at the official and parallel markets, with the local currency recording a significant gain against the greenback at the black market.

This came as the Central Bank of Nigeria announced the final settlements of all valid foreign exchange backlogs, fulfilling a key pledge of the apex bank governor, Mr. Olayemi Cardoso, to process an inherited backlog of $7bn in claims.

The Acting CBN Director, Corporate Communications, Mrs. Hakama Sidi Ali, who disclosed this in Abuja on Wednesday, recalled the central bank had recently cleared $1.5bn from the backlogs.

On Wednesday, the naira closed trading at 1,410/dollar at the parallel market and N1,492 at the official Nigerian Autonomous Foreign Exchange Market, according to data compiled from the FMDQ Securities Exchange.

The gain recorded by the naira at the official market represents an appreciation of N68 or 4.5 per cent, from the N1,560/$1 recorded on Tuesday at NAFEM, and a gain of 13.5 per cent or N190 at the parallel market.

According to findings by The PUNCH, the exchange rate has been gaining lately as speculators begin to dump their dollar stocks, following waning demand by prospective buyers amid CBN clampdowns.

A string of circulars by the Central Bank of Nigeria in recent weeks and months have helped to plug leakages and blocked loopholes previously explored by currency speculators and racketeers.

Also, the recent clampdowns on the activities of illegal BDC operators in Lagos, Abuja and Kano by the operatives of the Economic and Financial Crimes Commission have helped to reduce the volatility of the naira.

Advertisement

A Bureau De Change Operator at Wuse 2, Abuja, Ibrahim Yahu, said on Wednesday that the greenback was bought at the rate of N1400/$1 and sold at N1500/$, allowing operators to make a spread of N100/$1.

SEE ALSO:  Explosion rocks Abuja satellite town

He said, “The highest I can buy from you is N1400/$ but we are selling at N1500/$.”

He noted that some persons bought at the rate N1,300/$ during the daily trading activity.

Another currency trader, Malam Musa Yahyah, at the Central Business District in the FCT, expressed mixed feelings about the new rate, stating that some traders were forced to sell at loss due to a waning demand for the greenback.

In Lagos, a currency trader at Allen Avenue, Ikeja, Mustafa Ibrahim, said the waning demand for the dollar, partly driven by the commencement of dollar sale to BDC operators at the rate of 1,300/dollar, had further weakened demand for the greenback.

He said most traders bought and sold the dollar at N1350 and N1450 on Wednesday.

According to Ibrahim, the local currency may reach a new high of 1,200/dollar in weeks if the trend continues.

Also, Mallam Abubakar Salisu, who sells FX at the Murtala Muhammed Airport, Lagos, said the naira-dollar exchange rate at the parallel market had been fluctuating in recent times due to the activities of the CBN and the EFCC.

Advertisement

“As of today, many of us bought and sold at 1,400/dollar and N1,450/dollar. The rate is still volatile but many of us are anxious to sell because we know the dollar will soon crash. The only challenge is that many of us bought the FX when the rate was around N1,600, so we are concerned about the loss. We are seeking to minimise the loss,” he said.

Meanwhile, the intraday high closed at N1,620 per dollar for the spot on Tuesday while the intraday low closed at N1,350/$1 on the same day.

SEE ALSO:  Who advised you to plead guilty – Aisha Yesufu queries Bobrisky

The daily foreign exchange market turnover increased to $268.29m from $195.13 million recorded on Tuesday.

On Tuesday, it was reported that forex turnover at the official foreign exchange market increased to $11.43bn within two months of trading, following fresh reforms by the CBN.

An analysis of reports and data of daily forex transactions recorded on the website of FMDQ Securities, a platform that publishes official foreign exchange trading in the country, indicated that the figure increased by 185.75 per cent or $7.43bn between January and March 15th, 2024.

The improved liquidity at NAFEM followed a directive by the CBN on February 1, 2024, asking banks to sell their excess dollar stock to improve liquidity in the FX market within 24 hours.

The naira has continued to appreciate against the dollar following some foreign exchange measures put in place by the Central Bank of Nigeria.

Some of the FX reforms include efforts made at achieving a willing buyer-willing seller market; removal of all limits on margins for the International Money Transfer Operator remittances; introduction of a two-way quote system and the broad reforms in the Bureau De Change segment of the market to restore stability, enhance transparency, boost of supply, and promote of price discovery in the Nigeria Autonomous Foreign Exchange Market.

Advertisement

The pressure on the naira/dollar exchange rate is beginning to ease as Nigeria’s external reserves have sustained growth in one month.

Data from the CBN showed that the foreign currency reserves increased by 3.62 per cent to $34.37bn as of March 12, 2024 from $33.17bn recorded at the beginning of February 2024.

SEE ALSO:  CBN raises capital base for mega banks to N500bn, gives compliance deadline

The CBN recently announced a remarkable upswing in Diaspora remittances, soaring by 433 per cent to reach $1.3b in February, compared to $300m in January.

Advertisements
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

EKEDC migrates 33 additional feeders to Band A

Published

on

The Eko Electricity Distribution Company says the Nigerian Electricity Regulatory Commission has approved the migration of 33 additional feeders to Band A under its franchise area.

The feeders are Adeleke Adedoyin, Ajeast, Annex, Army Resettlement, British America Tobacco, CIG, Coker, Dideolu, Droyers, Empire Court, Estate, Etim Inyang, Firro, Freeman, Glover, Heritage, M&K Express, Mega Plaza, Montgomery 1, Moore Road, Nest Oil, NIMR, Nipost, Osborne, Ozumba Mbadiwe, Palace Road, Rocky Estate, Rumens, Smith, Station Feeder (Nitel), Victoria Arobieke, DPR andNitel.

The DisCo disclosed this Friday in a statement made available to our correspondent by the General Manager, Corporate Communications of EKEDC, Babatunde Lasaki.

The Federal Government, through the NERC, had on April 3 announced that subsidy would no longer be paid on the electricity consumed by Band A customers.

From N68 per kilowatt-hour, Band A customers now pay N255/KWh, while others maintain the old tariffs.

Lasaki said customers in these areas would experience “a guaranteed minimum of 20 hours of power supply daily in line with the newly approved Multi-Year Tariff Order”.

He assured customers within the EKEDC network of ongoing efforts to improve the quality of service rendered to them.

He said, “In our bid to serve our customers better, we are looking to even add more feeders to the list of our Band A feeders so that more customers can enjoy a guaranteed 20 hours of power supply daily.

Advertisement

“It is also our commitment to ensure that customers under other service bands, that is, Bands B to E also enjoy their guaranteed minimum supply hours while we work to improve our power supply”.

SEE ALSO:  Eid-el-Fitr: FG declares Tuesday, Wednesday public holiday

Lasaki added that EKEDC was working to eliminate supply downtime within its franchise area and achieve its goal of a stable and uninterruptible power supply.

He said, “The EKEDC is dedicated to investing more in infrastructural capacity to improve power supply and is working with all stakeholders to ensure a minimum of 20 hours of supply is available to all its customers”.

Advertisements
Continue Reading

Business

Mbah urges FG to complete Enugu int’l trade fair complex

Published

on

Enugu chamber of commerce lauds Mbah over security, infrastructure
Enugu State Governor, Dr Peter Mbah

The Enugu State Government has urged the Federal Government to bring to reality its resolve and pledge to build the Enugu International Trade Fair complex to international standard according to its master plan.

Gov. Peter Mbah made the call on Friday in Enugu while declaring open the 35th Enugu International Trade Fair.

The fair, which is being organised by
Enugu Chamber of Commerce Industry Mining and Agriculture (ECCIMA), is themed: “Promoting Made in Nigeria products for global Competitiveness.”

Mbah, represented by his Deputy, Chief Ifeanyi Ossai, noted that for equity, there was a need for the Federal Government to build and complete the fair complex just as it had done in Kaduna and Lagos fair complexes.

According to the governor, we cannot easily explain to our people why this fair complex is not developed, while that of Kaduna and Lagos had been fully built and developed by the Federal Government.

“I charge the Federal Minister, here present, to make a formal memo to the Federal Executive Council for its development. We cannot aviod to wait any longer on this vital economic development move,” he said.

He also called on the chamber and organised private sector in the region to work towards it through executive and legislative lobbying and advocacy as well as media awareness on the matter.

The governor also called on the chamber and other sister chambers in the South-East and South-South regions to open lobby for the opening up of viable waterways commercial businesses and goods movement through the River Niger Port, Ibom Deep Port and Oguta Port among others.

Advertisement

“This is to facilitate trade and large movement of goods as well as check the excess use of the roads to convey goods, which is more expensive,” he said.

SEE ALSO:  EKEDC migrates 33 additional feeders to Band A

Mbah said that the state had passed and signed it Electricity Act, which means that very soon it will give licence to private investors to produce electricity in the state.

 

“We know how vital the place of constant and reliable electricity to industrialization and economy growth of our dear state,” he said.

On the theme of the fair, he said that it was apt, adding that it was only through massive productive activities especially goods patronized by Nigerians can lead the country to prosperity.

“It is also good we add quality and value on every made in Nigerian product we are promoting to gain global competitiveness and acceptability,” he said.

The Minister of Innovation, Science and Technology, Chief Uche Nnaji, noted that with its wealth of agricultural and mineral resources, Enugu State is in a prime position to lead the push for products made in Nigeria.

Nnaji said that the state’s potential for various industries, including energy, pharmaceuticals, and building materials, sets the groundwork for substantial economic change and industrial growth.

Advertisement

He said: “To make the most of this potential, it’s vital for the state to encourage investment and offer financial incentives to businesses. Enugu’s key location and the increasing demand for local products highlight big market opportunities.

“This effort is supported by Presidential Executive Order Number 5 and the goals of my Ministry to use innovation, science, and technology as the main drivers of economic change.

“We are dedicated to improving the quality and appeal of locally made products, demonstrated by our backing of engineering developments and research efforts.”

SEE ALSO:  David Mark @ 76 : Bestriding Two Worlds

In a welcome address, Chief Odeiga Jideonwo, President of Enugu Chamber of Commerce Industry Mining and Agriculture (ECCIMA), called on Federal Government through the CBN to reconsider reviewing downwards, interest rate.

Jideonwo noted that policies of government especially as it affects credit to SMEs should be made to work by using the business associations as buffer for her members that are genuinely in need of credit facilities to expand their business operations.

According to him, now is the time to support the startups/SMEs which will in turn, tackle the issue of unemployment, insecurity, hunger, etc, in our country, for wealth creation.

“There is no gainsaying that this will go a long way to unleash the economy of most states in the Federation and thereby expanding the frontiers of the nation’s economy.

“One of the unique features of the 35th Enugu International Trade Fair, is the presence of the second 1000sqm Marquee Tent designated to accomodate SMEs from Enugu State.

Advertisement

“All thanks to His Excellency, the Executive Governor of Enugu State, Dr. Peter Ndubuisi Mba for sponsoring the installation of this tent where all SMEs are showcasing their products and services.

“By this, the ingenuity and new ideas in the state would be brought to bear for commercialization. We have also made entry to the Fair complex free to all visitors. This is aimed at driving more traffic into the Fair.

“Interestingly, we have resolved to make this fair a pilot fair to boost our match making strategy to provide a more amenable atmosphere for interface between Researchers, Prototype Innovators and Investors for enhanced linkages to enhance and unleash the industrial sector/SMEs.”

Advertisements
Continue Reading

Business

Transcorp demonstrates robust growth in FY’23 as revenue increases by 47.3%

Published

on

…pre-tax profit up by 93.5%

Transnational Corporation Plc has announced its financial results for the year ended December 31, 2023.

The Group achieved substantial growth in its financial indicators, reinforcing its market leadership and strategic positioning.

In its audited results, Transcorp reported significant year-on-year growth, with revenue rising to N197 billion in the year 2023, from N134 billion in 2022, representing a 47.3% increase. The strong performance is further demonstration of the Group’s strategic focus and effective execution.

Highlights of Transcorp group Results:

• FY 2023 Revenue was N197 billion, a significant increase of 47.3%, compared to 2022.

• Operating Expenses saw an increase of 22.6% year on year, totalling N26.9 billion in 2023, reflecting the impact of inflation.

• Net Finance Cost increased by 46% to N22.6 billion, arising from interest on foreign currency loans, that has now been repaid.

• Profit before Tax surged by 93.5%, amounting to N58.8 billion in 2023, compared to N30.4 billion in the same period last year.

Advertisement

• Profit after Tax improved 91% year-on-year to N32.6 billion in 2023, compared to N17.1 billion in the same period last year.

• Earnings per share of the Group were N40 compared to N19 in 2022.

• Total assets grew by 20%, to N529.9 billion in full year 2023, up from N442.7 billion in December 2022.

In response to the results, Dr. (Mrs) Owen D. Omogiafo, President/Group Chief Executive Officer of Transcorp, commented, “The financial results for 2023 underscore our Group’s strong operational performance and the results of our strategic initiatives. Notwithstanding the strong macroeconomic headwinds in the year, we achieved significant growth in revenue and profits, indicating our ability to navigate a dynamic market landscape effectively. Our primary objectives remain centered on achieving sustainable growth, enhanced operational and technical efficiency, and maximizing value for shareholders.”

SEE ALSO:  Explosion rocks Abuja satellite town

Transcorp is dedicated to its transformation agenda, emphasizing sustained growth and a relentless pursuit of long-term value for shareholders.

Transnational Corporation Plc (Transcorp Group) is one of Africa’s leading, listed Conglomerates, with strategic investments in the power, hospitality, and energy sectors, driven by its mission to improve lives and transform Africa.

Transcorp’s power businesses, Transcorp Power Plc and Transafam Power, provide over 15% of Nigeria’s installed power capacity. Transcorp is committed to developing Nigeria’s domestic energy value chain, through its investments in OPL281. The Group’s hospitality business, Transcorp Hotels Plc owns the iconic Transcorp Hilton Abuja, Nigeria’s flagship hospitality destination, and has launched the digital platform Aura by Transcorp Hotels.

Advertisement
Advertisements
Continue Reading

Trending